The role of investment in the development of smart agricultural technologies in megacities

Mehriban Aliyeva, Leyla Huseynova, Gulnara Agabekova
Received: 03.10.2024 Revised: 26.04.2025 Accepted: 28.05.2025
Retrieved from Vol. 28, No. 6, 2025 Pages: 150-164
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Abstract

The aim of the study was to analyse the role of investments in the development of smart agricultural technologies in the agro-industrial complex of various regions, with a focus on the implementation of these technologies in Azerbaijan. The study analysed current investment trends in smart agricultural technologies in North America, Europe, the Asia-Pacific region, Latin America, the Middle East and Africa for 2023-2024, and assessed their impact on the development of the agro-industrial complex in the period from 2023 to 2034. The investment analysis showed that North America accounted for the largest share of the smart agricultural technology market in 2023-2024 (43%), followed by the Asia-Pacific region (28%) and Europe (23%), while Latin America received only 4% and the Middle East and Africa 2%. Forecasts showed that the global smart agrotechnology market will grow from USD 20.87 billion in 2023 to USD 74.03 billion in 2034. The results also indicated that the main investments are directed towards process automation, precision farming, soil and livestock monitoring, and the use of artificial intelligence and big data to predict crop yields. At the same time, the biggest barriers to development were political and economic instability, limited access to financing for small agricultural enterprises, and uneven infrastructure development in different regions. On the other hand, the results showed that the introduction of smart agrotechnologies in Azerbaijan’s agro-industrial complex increases production efficiency through precision farming, the use of drones and satellite technologies, digital platforms, innovations in supply chains, and agro-parks. These technologies optimise resources, improve monitoring and reduce costs, increasing the competitiveness of the agricultural sector. Projects such as “Agali Smart Village” and “Irrigation Control System” not only modernise technologies but also improve social conditions in rural areas. In addition, there has been a significant increase in funding for the agricultural sector, particularly in the state budget for 2025, where spending on agriculture has been increased by more than 30 million manats. The analysis also showed positive dynamics in the economic indicators of Azerbaijan’s agricultural enterprises between 2018 and 2024. At the same time, challenges were identified, such as the need to modernise infrastructure, improve staff qualifications and improve legislation. Thus, the results obtained indicate the positive impact of investments in smart agrotechnologies on the efficiency of the agricultural sector both in Azerbaijan and in other regions of the world

Keywords

digitalisation of agriculture; automation of production processes; enterprise financing; global market forecasts and trends; improving production efficiency

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Aliyeva, M., Huseynova, L., & Agabekova, G. (2025). The role of investment in the development of smart agricultural technologies in megacities. Scientific Horizons, 28(6), 150-164. https://doi.org/10.48077/scihor6.2025.150